Questions on Form 6765 for R&D Tax Credit

I didn't partition this question.

I wanted to know if Line 6 for supplies should include things like:

- purchased computer expenses (as distinct from line 7 which is for leased computers)

- depreciation on R&D related fixed assets

For the labor related expenses, I wanted to know if the labor cost for R&D should include:

- medical insurance

- 401K employer contribution

- workers compensation

And for both the supplies and labor, what kinds of items are not allowed.

Unless there is a professional on this newsgroup that deals with the Section 41 research credit regularly, you probably will not get a direct answer. This credit has been adjudicated often and there are various tax court and circuit opinions on what is a qualified research expense (QRE). You need someone who keeps current on the issues.

I can point you to what the IRS says qualifies as a QRE under wages, supplies and contract expenses. However, note that this guide was published in 2005 and there were a whole series of court cases since then that have modified what you will read. The section on the definition of wages appears to be still current.